A.M. Best has announced plans to establish a new subsidiary in Amsterdam to ensure it can continue to deliver rating services throughout the European Union (EU) once the UK leaves in March 2019.
The new subsidiary, called A.M. Best (EU) Rating Services B.V., has now been registered as a credit rating agency by the European Securities and Markets Authority (ESMA).
A.M. Best’s London-based subsidiary, A.M. Best Europe – Rating Services Limited, is at present registered with ESMA in Paris, which allows it to provide rating services throughout the EU on a cross-border basis.
“We welcome this news that our application has been successful,” said Roger Sellek, Chief Executive of A.M. Best’s Europe, Middle East, Africa and Asia Pacific operations.
“ESMA’s registration of A.M. Best’s Amsterdam office enables us to prepare for any kind of Brexit outcome, to ensure continuity of our rating services for our clients,” he explained.
The rating agency said it selected Amsterdam as the location for its new office given the city’s reputation as a well-established financial centre, as well as its diverse talent pool, and its transport links to major European locations.
Going forward, A.M. Best’s office in London will continue to act as its hub for the EMEA region, the firm said, and will be registered with the U.K. Financial Conduct Authority (FCA), which is assuming responsibility for the supervision of U.K. based credit rating agencies post-Brexit.
“The Amsterdam office reinforces A.M. Best’s ambitious growth agenda for continental Europe and demonstrates our commitment to providing continuity of rating services throughout the EU post-Brexit whilst developing our coverage in other international markets across the broader EMEA region from London,” said Nick Charteris-Black, managing director, market development for A.M. Best Europe, Middle East and Africa.
A.M. Best stipulated that its ongoing Brexit plans may be adapted as the terms of the agreement between the UK and the EU are finalised.
